The Best Car Insurance in Tennessee for 2022

The best auto insurance companies in Tennessee combine excellent customer satisfaction, financial stability and affordability. According to MoneyGeek’s research, the top insurer in the state is Erie, which has the highest claims score and also ranks first for user satisfaction.

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Last Updated: 5/13/2022
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Erie emerged as the best car insurance provider in Tennessee based on affordability and customer service scores, as per MoneyGeek’s research. You may decide to get your car insurance coverage from Erie or a different high-ranking insurer depending on your needs.

Using MoneyGeek’s recommended companies while shopping around for the cheapest car insurance in Tennessee can also help you find the most affordable policy without considering the quality of service.

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The Best Car Insurance in Tennessee

Best Car Insurance Companies in Tennessee: Overall

MoneyGeek analyzed the top car insurance providers in Tennessee according to the user satisfaction, financial stability, claims and affordability scores.

Based on the analysis, the top car insurance companies in Tennessee overall are:

  • Erie: MoneyGeek score of 4.2 out of 5
  • GEICO: MoneyGeek score of 4 out of 5

USAA had an average score of 4.9, which is higher than both Erie and GEICO. However, it was excluded from this study because it only provides car insurance coverage to military personnel and their families.

The Top 5 Car Insurance Companies in Tennessee

1
Erie
Score:4.2

3/5

Affordability

4.5/5

User Satisfaction

4.5/5

Financial Stability

Geek Quick Take
Geek Quick Take

Erie had the highest total score of 4.2, as well as the highest claims score. The company tied for first in satisfaction and third for stability. Policyholders pay an average of $877 per year for Erie’s policies and can get better car replacement coverage at an extra cost.

More About Erie

Erie offers its customers better car replacement insurance which is rare to find among other insurers. If your car gets totaled within two years of purchasing it, the insurer will replace it with the newest model. You will also get accident forgiveness if you complete three years without filing a claim with the insurer.

Read MoneyGeek's Erie auto Insurance Review
2
GEICO
Score:4

3.7/5

Affordability

4/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

GEICO has the highest stability score, meaning that policyholders are confident that their claims will be paid. The company ranks third for satisfaction and second for claims, and has an average annual rate of $776, which is the cheapest in the state. Customers may get mechanical breakdown assistance as part of their policy.

More About GEICO

GEICO policyholders can get mechanical breakdown insurance as additional coverage if their car is less than 15 months old and hasn’t covered 15,000 miles. This coverage provides improved coverage at a lower rate than a dealer’s warranty. GEICO also offers accident forgiveness if you’re accident-free for at least five years.

Read MoneyGeek's GEICO auto Insurance Review
3
State Farm
Score:4

3.4/5

Affordability

4.5/5

User Satisfaction

4/5

Financial Stability

Geek Quick Take
Geek Quick Take

State Farm policies cost an average of $826 per year in Tennessee. The company tied for first place for satisfaction and claims. However, the company has the lowest stability ranking of the companies we studied. Policyholders can add rideshare insurance.

More About State Farm

The State Farm rideshare insurance retains medical, roadside assistance and rental car reimbursement coverage when you work with a rideshare company. The company also offers roadside assistance as a standalone feature, which pays for mechanical labor, towing, gas delivery and more.

Read MoneyGeek's State Farm auto Insurance Review
4
Progressive
Score:3.3

2.4/5

Affordability

3.5/5

User Satisfaction

4.5/5

Financial Stability

Geek Quick Take
Geek Quick Take

Progressive costs an average of $959 per year and tied for third on the stability scale. However, this company was tied for last place for both satisfaction and claims, among companies profiled. The company provides its customers with custom parts coverage.

More About Progressive

The custom parts coverage from Progressive allows you to replace or repair custom parts of your car, such as your stereo or navigation system. Policyholders can also get rideshare insurance, which protects you against accidents that occur while you’re waiting for a ride request.

Read MoneyGeek's Progressive auto Insurance Review
5
Nationwide
Score:3.2

1.2/5

Affordability

4/5

User Satisfaction

4.5/5

Financial Stability

Geek Quick Take
Geek Quick Take

Nationwide ranks third for both stability and satisfaction and earned second place for claims. That said, the company has a high average price point of $1,124 per year. Nationwide provides its policyholders with identity theft coverage.

More About Nationwide

The company offers identity theft coverage of up to $25,000 if you or anyone you live with are a victim of identity theft. Nationwide’s total loss deductible waiver pays for the deductible of your comprehensive or collision coverage if your car gets totaled after an accident.

Read MoneyGeek's Nationwide auto Insurance Review
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HOW WE DETERMINED THE BEST INSURANCE IN TENNESSEE

MoneyGeek determined the best full coverage car insurance in Tennessee by comparing quotes from different insurers within the state. The sample driver used in the study is a 40-year-old man who has a full coverage policy, although your costs may be higher or lower than these averages depending on your background.

MoneyGeek also utilized claims ratings and user satisfaction scores from J.D. Power and the NAIC to come up with Tennessee’s full coverage car insurance rates.

Reading the MoneyGeek methodology will give you a better understanding about the average costs across sample drivers, as well as the policies and assumptions used in the study.

MoneyGeek's Tennessee Car Insurance Resources:

Compare the Best Insurance Options in Tennessee

Using MoneyGeek’s analysis can help you secure the best car insurance in Tennessee as it gives you access to in-depth reviews on your ideal provider.

Car insurance rates in the state vary considerably based on the coverage amount, financial stability, quality of service and various other factors. Your monthly premiums will be influenced by your personal profile and which company you choose.

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Best Car Insurance in Tennessee for Customer Service

MoneyGeek also ranked the top car insurance carriers in Tennessee according to user satisfaction and claims scores, without considering the cost. As per this combination, the best car insurance companies in the state for customer service are:

  • Erie: MoneyGeek score of 4.7 out of 5
  • Auto-Owners: MoneyGeek score of 4.3 out of 5

If cost is disregarded, the top two car insurance providers in Tennessee are Erie and Auto-Owners. Erie also ranks the highest when cost is considered.

The Top 2 Car Insurance Companies in Tennessee for Service Quality

1
Erie
Score:4.7

5/5

Claims

4.5/5

User Satisfaction

4.5/5

Financial Stability

Geek Quick Take
Geek Quick Take

Erie is the best insurer in Tennessee for customer service. The company has the highest claims and satisfaction ratings. Since Erie also ranks among the cheapest car insurance providers in the state, you can still pay less for its policies without compromising on quality.

More About Erie

Erie provides new car replacement coverage to policyholders. That means if your new car gets totaled, the insurance company will replace it with the same make and model. Erie also offers accident forgiveness for customers who have an at-fault accident after three claim-free years.

Read MoneyGeek's Erie auto Insurance Review
2
Auto-Owners Insurance Co
Score:4.3

4/5

Claims

4.5/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

Auto-Owners is the second-best insurer in Tennessee for customer service. It has a stability rating of 5 out of 5, which is the highest in the state. It is also tied for second for claims.

More About Auto-Owners Insurance Co

Auto-Owners provides diminished value coverage that ensures you get reimbursed for a reduction in the value of your car if you are involved in an accident. The company’s Personal Automobile Plus Package includes more than 10 additional coverages for one low rate.

Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review

Best Car Insurance in Tennessee for Drivers on a Budget

MoneyGeek also ranked the top car insurance companies in Tennessee for the state minimum coverage. The best companies in this category provide the lowest costs for drivers on a budget, while still providing solid customer support. According to the scores, the best insurance companies in the state are:

  • Erie: MoneyGeek score of 4.4 out of 5
  • GEICO: MoneyGeek score of 4.2 out of 5

MoneyGeek’s Pick: Erie

Erie

pros

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Affordable minimum state coverage at an average of $427 per year

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Bundling, anti-theft system, pay-in-full and airbag discounts available

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Satisfaction score of 4.5 out of 5

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Claims score of 5 out of 5

cons

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Policyholders do not get multiple car, safe driving, defensive driving or paperless discounts

COMPANY HIGHLIGHTS

Erie provides various discounts that you can take advantage of to save on your premiums. These include bundling, anti-theft, airbag and pay-in-full discounts. If you bundle your car insurance with life or home insurance, you will pay less for your premiums. You also pay less if you have an anti-theft system or airbag in your car. In addition, you will receive a discount if you pay your premium in full each month.

Best Car Insurance in Tennessee for Poor Driving Records

Tennessee residents with a bad driving record can find affordable rates in the state using MoneyGeek’s analysis of the best auto insurance companies for drivers with an at-fault accident.

According to MoneyGeek’s research, the companies providing the best service for drivers with a bad driving background are:

  • Erie: MoneyGeek score of 4.4 out of 5
  • State Farm: MoneyGeek score of 4.3 out of 5

The above scores balance affordability and customer service for drivers with bad driving records.

MoneyGeek’s Pick: Erie

Erie

pros

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Affordable car insurance after an at-fault accident at an average of $1,120 per year

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Rental car reimbursement, accident forgiveness, new car replacement and better car replacement coverages available

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Claims score of 5 out of 5

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Satisfaction score of 4.5 out of 5

cons

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Roadside assistance is not provided to policyholders

COMPANY HIGHLIGHTS

Erie offers the best car insurance coverage to drivers with a bad driving history. It has the highest claims score in Tennessee, at 5 out of 5, and an average cost of $1,120 per year.

Erie provides the following additional coverages for drivers with an at-fault accident:

  • Rental car reimbursement: If your car gets damaged for more than 24 hours, you will get reimbursement for any alternative transport you use, such as a rented car.
  • Accident forgiveness: This coverage ensures your insurance premiums do not go up if you get involved in an at-fault accident after three claim-free years.
  • Auto Security (new car and/or better car replacement): This coverage pays to replace your vehicle with the newest model if your car gets totaled within the first two years. For cars more than two years old, you will receive a vehicle two years newer.

Best Car Insurance in Tennessee for a Military Background

According to MoneyGeek’s scores, USAA ranks the best in Tennessee and across the country for current and former military members. USAA scored 5 out of 5 across all categories except satisfaction, where it has a score of 4.5. Its total score of 4.9 is higher than the other insurers discussed in this guide.

MoneyGeek’s Pick: USAA

USAA

pros

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Affordable full coverage car insurance coverage at $602 per year on average

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Claims score of 5 out of 5

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User satisfaction score of 4.5 out of 5

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Roadside assistance coverage available

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Safe driving discounts

cons

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Only available to military members and their families

COMPANY HIGHLIGHTS

USAA is renowned for providing cheap car insurance across the country. The following are some of the discounts and coverages provided by the company:

  • Mileage discount: USAA gives drivers discounts depending on how much they drive in a year.
  • Loyalty discount: You are eligible for lower car insurance rates if you keep your USAA policy for a long time.
  • Roadside assistance: Covers the cost of unlocking your vehicle, towing, changing a flat tire and jumpstarting your battery, among other services.
  • Accident forgiveness: If you remain accident-free for five years, your car insurance cost will not increase after your first at-fault accident.

Best Car Insurance in Tennessee for Young Drivers and Students

MoneyGeek also ranked the best auto insurance companies in Tennessee based on affordability and customer service for young drivers and students. These drivers tend to pay high rates for auto insurance due to their lack of experience behind the wheel.

From the analysis, the best insurers for young drivers and students are:

  • GEICO: MoneyGeek score of 4.3 out of 5
  • Progressive: MoneyGeek score of 4.1 out of 5

GEICO and Progressive offer policies that balance low costs and customer service for young drivers and students.

MoneyGeek’s Pick: GEICO

GEICO

pros

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Affordable car insurance coverage for young drivers at $1,812 on average

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Offers good student and driver’s education discounts

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Claims and user satisfaction scores of 4 out of 5

cons

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Does not provide a distant student discount

COMPANY HIGHLIGHTS

Adding students and young drivers to your policy can be costly. With a GEICO policy, you can do this at a lower rate and still get quality service. GEICO provides good student and driver’s education discounts to customers. However, it does not provide lower rates for distant students living far from home.

Best Car Insurance in Tennessee for Those With New Cars

If you have a new car, you can also consider using MoneyGeek’s recommendation of the best insurance in Tennessee to identify insurers that offer new car replacement coverage. If you add this coverage to your standard policy, your insurer will replace your damaged car with a similar make and model.

In Tennessee, Erie got the highest MoneyGeek score in this category, at 4.2 out of 5. Erie combines new car and better car replacement coverages with its Auto Security package, which replaces your car with one of the newest model year.

MoneyGeek’s Pick: Erie

Erie

pros

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Affordable average annual rate of $877 per year

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New car replacement and better car replacement coverage

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Claims rating of 5 out of 5

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User satisfaction score of 4.5 out of 5

COMPANY HIGHLIGHTS

If you drive a new car, you may consider getting a policy from Erie due to the new car replacement and better car replacement coverage that the company offers. Since cars depreciate in value as years go by, these two types of coverage can help you get a brand new replacement for your used car.

The Erie Auto Security program replaces your vehicle with the newest model year if it’s less than two years old. For cars older than that, you’ll get a model that’s two years newer.

Best Car Insurance in Tennessee for Low-Mileage Drivers

Pay-per-mile insurance is gaining significant popularity among some insurance companies. The way this feature works is that drivers only pay for car insurance based on the number of miles they drive.

The best pay-per-mile insurance program in Tennessee is Nationwide Smartmiles, which allows you to pay for car insurance based on a base rate and a variable rate.

MoneyGeek’s Pick: Nationwide

Nationwide

pros

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Nationwide Smartmiles offers the most affordable coverage for low-mileage drivers

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Claims and satisfaction scores of 4 out of 5

cons

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Drivers who drive regularly may pay more than they would for standard insurance coverage

COMPANY HIGHLIGHTS

Smartmiles utilizes base and variable rates to determine a driver’s premium amount depending on the number of miles driven. It only counts the first 250 miles per day if you’re on a road trip.

How to Find the Best Car Insurance in Tennessee in For You

When purchasing auto insurance in Tennessee, MoneyGeek’s scores can help you identify the right coverage in terms of financial stability, cost and quality of service. Although this research can help you save time, you may also decide to carry out your own research across these factors.

1

Research Customer Service Reputations in Tennessee

MoneyGeek scored the best car insurance companies in Tennessee from various quotes sourced using a sample driver’s profile. MoneyGeek also used the NAIC complaint ratios and customer satisfaction scores from J.D. Power to calculate the average rates for the state. You may also use the NAIC and J.D. Power scores to find the best combination of car insurance policy factors for your needs. You can also find useful information from the Department of Commerce and Insurance in Tennessee.

2

Compare the Quotes

MoneyGeek’s costs were obtained from various insurers using a sample driver. These costs do not cover all locations in Tennessee, so you may need to compare quotes among several insurers if you want to get the best coverage.

3

Make Sure the Company Has Coverages You Want in Tennessee

While shopping around for car insurance in Tennessee, you need to ensure that your provider of choice has the discounts and type of coverage you need. Some insurers may advertise discounts and coverages without indicating which states they’re available in

4

Double-Check Financial Stability Ratings

The stability of a company is determined by its financial strength and this influences the likelihood of a company to settle customer claims. While purchasing car insurance, ensure that you understand the financial stability of your provider, as companies with lower financial stability scores may struggle with processing your claims effectively.

FAQs About the Best Car Insurance in Tennessee

How much you pay for car insurance in Tennessee depends on various factors, including the coverage amount. Learning the answers to some frequently asked questions can help you find the best policy for your circumstances.

Methodology

MoneyGeek collected car insurance costs in Tennessee in partnership with Quadrant Information Services. The costs were for a sample 40-year-old male driver with comprehensive car insurance coverage of 100/300/100 and a deductible of $1,000. The driver has a 2010 Toyota Camry LE.

Financial stability, claims and customer satisfaction scores were from J.D. Power, AM Best and the National Association of Insurance Commissioners. Information about discounts and coverage types was obtained from each company’s website.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.